To transfer funds from PayPal to a bank account, the user has to log into PayPal and transfer the money manually.
No - Paypal is intended as an electronic funds transfer system. You register a bank account with them, and the funds are deducted from that account when you make an online purchase, and elect to use Paypal to pay for it.
Yes, through PayPal. Sign up for a free PayPal account and upload the funds from your bank. Add the other bank to your account and withdraw the uploaded funds to your other bank.
Paypal collects the money from them - via electronic funds transfer, then Paypal deposits the money into your registered account.
All one needs to make a payment using PayPal is a PayPal account with the funds, and the e-mail address of the recipient of the money. To receive the funds all the recipient needs is a PayPal account associated with the e-mail address that was used.
No, you don't have to have a bank account to open a PayPal account, but unless you do have one, you can't become "PayPal Verified". Your PayPal account will initially have sending and receiving limits and to lift these limits (and withdraw any money), you need to register your bank account details to your PayPal account. You can also use a Visa credit card to send and receive payments.
Same as relocated, funds relocated to my account.
Yes, it is possible to pay via PayPal without adding funds directly to that account. If you have a balance in your PayPal account, for example, if someone has sent you some money or you have sold something through an auction site and so received money into your PayPal account, this will always be taken first to pay for anything you buy using the PayPal account. If that balance doesn't cover the entire cost of your purchase, the remainder outstanding will automatically be taken from your bank or credit card, depending which you have registered to your PayPal account. The same applies if you have no money at all in PayPal.
You can register your bank (or checking) account to your PayPal account and use that to both send and receive funds. To withdraw money from PayPal to your bank account, you need to go through the verification process.
If you have insufficient funds in your account for the amount you want to transfer, Paypal will reject the transaction.
No, a PayPal account is not a credit card. You can register your own credit card details with PayPal and they act as an "intermediary", taking money from your card to pay sellers for your online purchases. PayPal do offer their own credit card now as well, but that is an entirely separate issue from a PayPal account.
When a buyer pays you with PayPal, the money (less the PayPal fee) goes into your PayPal account. From there, you can either use the funds to pay for your own online purchases (assuming that the seller accepts PayPal), or you can draw the money down into your own bank account. To withdraw the money, log into PayPal and use the Withdraw tab and you can then select how much you want to transfer to your bank account. Once initiated, it takes a few days for the money to arrive. If you aren't already "PayPal verified", you'll need to go through this process before you can withdraw any funds and you'll find information on how to become verified once you log into your PayPal account.